showing the working

← Radian Group

The business behind the dividend

MeasureRDNMedianFormula
Return on equity12.2%10.6%Net income ÷ shareholders’ equity
Return on capital employedOperating income ÷ (equity + total debt)
Owner earnings$588.43m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$115.66m$155.08mOperating cash flow − capital expenditure
Operating margin66.1%14.3%Operating income ÷ revenue
Net margin48.7%10.1%Net income ÷ revenue
Debt to equityTotal debt ÷ shareholders’ equity
Interest coverOperating income ÷ interest expense
Current ratioCurrent assets ÷ current liabilities
Long-term debt to working capitalLong-term debt ÷ (current assets − current liabilities)
Cash conversionOperating cash flow ÷ net income
Accruals5.7%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Cash conversion, Current ratio, Debt to equity, Long-term debt to working capital, Interest cover, Return on capital employed — why a blank is not a zero.

Ten years of it

The same measures, for every year the filings support. One year is a fact; a row is a business.

Measure2025202420232022202120202019201820172016Median
Return on equity12.2%13.1%13.7%19.0%14.1%9.2%16.6%17.4%4.0%10.7%13.1%
Operating margin66.1%70.1%73.4%80.0%57.5%33.3%55.6%53.7%28.4%39.1%55.6%
Net margin48.7%50.1%51.2%62.4%45.2%27.4%44.0%47.6%9.9%24.9%45.2%

How it compares in banks & insurers

Among the 377 banks & insurers companies here measured on GAAP earnings, Radian Group pays out less than 249 of them. The median for that group is 30.6%, against this company’s 24.6%.

Closest on GAAP earnings

Same sector and same denominator, so the figures are comparable. All 377 in banks & insurers →